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5. The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31,2009 , follow. Lakely's buildings

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5. The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31,2009 , follow. Lakely's buildings were undervalued on its financial records by $60,000, and equipment is undervalued by $40,000. On December 31,2009 , Jode issued 50,000 new shares of its $10 par value stock to the owners of Lakely in exchange for all of the outstanding shares of that company. Jode's shares had a fair value on that date of $30 per share. Besides the undervalued buildings and equipment, all other assets and liabilities are fairly valued. The Lakely Corporation is dissolved, and only Jode Inc. continues. Required: Prepare the entry by Jode to record the acquisition of Lakely Corporation. ( 8 points)

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